BUSINESS leaders today warned firms throughout Coventry and Warwickshire to be on their guard against unofficial data protection specialists...

BUSINESS leaders today warned firms throughout Coventry and Warwickshire to be on their guard against unofficial data protection specialists.

The Federation of Small Businesses cites cases where a registration fee of #111 has been demanded from firms approached.

One company, called Data Protection Agency Services, has already sent official-looking letters to several businesses in Coventry.

The letters give the impression that the firm must pay up to register under the Data Protection Act of 1988 and a failure to pay would be punished by fines and other penalties.

But John Walker, FSB policy chairman, advised small firms to ignore any approaches from Data Protection Agency Services and contact their local office of the Trading Standards Service, which is carrying out an investigation.

At the same time, the Information Commissioner, Elizabeth France, who is responsible for data protection, said that many firms may not even need to be registered.

She added her warning to companies not to be misled by businesses which have no statutory powers to maintain the register.

She said: "My office has received a number of reports from data controllers who say they have been misled by the activities of these companies.

"I am particularly concerned that there appears to be much confusion caused by the tone and content of correspondence being distributed by these businesses and that some data controllers saw a connection with my office.

"The annual statutory notification fee is #35. We have worked to ensure that the notification process is a simple and efficient one, which is easily accessible to data controllers who need to notify their data processing to us."